Alpha Modus Secures $10M Highly Dilutive Financing Facility, Pledges All Assets
AMOD sits 21% above its 52-week low of $3.79.
Summary
Alpha Modus secured up to $10 million in highly dilutive, asset-backed financing, with an initial $2 million received, but at terms indicative of severe financial distress.
Key Events · Financing and Capital Events · AMOD
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Secured $10M Financing Facility
The company entered into a Securities Purchase Agreement for a Secured Pre-Paid Purchase facility of up to $10,000,000 with Streeterville Capital, LLC.
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Initial $2M Funding Received
Alpha Modus received an initial $2,000,045 from the investor, which included a $2,190,000 principal amount Pre-Paid Purchase and 450,000 Pre-Delivery Shares (issued for a nominal $45.00).
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Highly Dilutive Terms
Future share purchases under the facility will be at 90% of the lowest daily volume-weighted average price (VWAP) during the five trading days prior to purchase, subject to a low floor price of $0.81 per share, significantly below the current market price.
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All Assets Pledged as Security
The investor received a first-priority security interest in all assets of the company and its subsidiaries, including intellectual property, indicating a strong protective measure for the lender.
Analysis · AMOD · Real Estate & Construction
Alpha Modus Holdings has secured a new financing facility of up to $10 million from Streeterville Capital, LLC, which includes an initial funding of $2,000,045. This capital infusion is critical for the company, which has previously disclosed a severe going concern warning and critically low cash. However, the terms are highly unfavorable for existing shareholders. The investor receives a first-priority security interest in all company assets, including intellectual property. Future share issuances under the facility can occur at a significant discount to market, with a floor price of $0.81 per share, substantially below the current stock price of $4.58. Additionally, the CEO, CSO, and their affiliated entities have subordinated their existing debt and equity to this new investor, highlighting the company's distressed financial position and the concessions made to secure this funding.
At the time of this filing, AMOD was trading at $4.58 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $18.4M. The 52-week trading range was $3.79 to $104.00. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.